Beneficiaries

Dear Atty. Nico,

My spouse and I have been estranged for almost five years due to his philandering ways. From our time together, our son was born.

A week ago, he died due to brain aneurysm. Not only that, I discovered that he took out a life insurance policy and named his mistress and their two children as his beneficiaries.

There being a misrepresentation, is there a way for me and my son to claim from the said policy?

I hope you can give me a favorable response. Thank you.

Irma

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Dear Irma,

Under existing jurisprudence, sadly you cannot claim from the aforementioned insurance policy as you are considered third parties to such contract.

In the case of Heirs of Loreto C. Maramag v Eva Verna de Guzman Maramag, et al., the Supreme Court cited Section 53 of the Insurance Code which provides:

The insurance proceeds shall be applied exclusively to the proper interest of the person in whose name or for whose benefit it is made unless otherwise specified in the policy.

As such, the only persons entitled to claim the insurance proceeds are either the insured, if still alive; or the beneficiary, if the insured is already deceased, upon the maturity of the policy. The exception to this rule is a situation where the insurance contract was intended to benefit third persons who are not parties to the same in the form of favorable stipulations or indemnity. In such a case, third parties may directly sue and claim from the insurer.

Based on the facts given, it can be inferred that you and your son are third parties because the insurance policy did not name you as beneficiaries. Hence, you are not entitled to the proceeds. With an allegation of misrepresentation, the share of the mistress shall be awarded to her two children, either in view of the prohibition on donations under Article 739 of the Civil Code or based on the stipulations of the insurance contract.

Atty. Nico A. Antonio